Romania - Viisoara Irrigation Project

Dmin of The World Bank FOR OFFICIAL USE ONLY Report No. 6558 PROJECT COMPLETION REPORT ROMAN T A VlITSOARA IRRIGATION PROJECT (LOAN 1509-RO) December 29, 1986 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization  THE %&'ORLD BANKFOR OFFICIAL USE ONLY TtlE W'ORlD SANK Washington, D.C 20433 US.A. O04c1 od Dv.cto.w-G~I OpsaImt IvakiaWn December 29, 1986 MEMORANDUM TO TTIlE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report or Romania Viisoara Irrigatior. Project (Loar. 1509-RO) Attached, for information, is a copy of a report ertitled Project Completior. Report orn Romania Viisoara Irrigatior Project (Loar 1509-RO) prepared by the Europe, Middle East and North Africa Regional Office. Further evaluation of this project by the Operations Evaluatior.n epartmeVt has not been made. Attaclin rt / ! This document has a restricted distribution and may be used by recipients only in the performance I of their official duties Its contents may not otherwise be disclosed without World Bank authorization1  FOR OMCIAL USE ONLY LIST OF ACRONYMS BAFI Bank for Agriculture and Food Industry CAP Cooperative for Agricultural Production CELIF Central for Exploitation of Land Reclamation Works DGAFI General Directo.ate for Agriculture and Food Industry DGEIFCA Economic General Directorate for Land Reclamation and Agricultural Construction DIFCA Department for Land Reclamation and Agricultural Construction ERR Economic Rate of Return GNP Gross National Product GSI Group for Supervising Investments IAS State Agricultural Farms ICB International Competitive Bidding IEELIF Enterprise for Execution and Exploitation of Land Reclamation Works IELIF Enterprise for Exploitation of Land Reclamation Works ISPIF Institute for Studies and Designs of Land Rezlamation K20 Potash MAFI Ministry for Agriculture and Food Industry N Nitrogen O & M Operation and Maintenance PCR Project Completion Report P205 Available Phosphate PS Pumping Station SMA Station for Agricultural Machinery TCIF Construction Trust for Land Reclamation Works This document has a restricted distribution and may be used by iecipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  ROMAN IA VIISOARA IRRIGATION PROJECT (LOAN 1509-RO) PROJECT COMPLETION REPORT Table of Contents Page No ! Preface Basic Data Sheet ii Evaluation Summary iii I. INTRODUCTION .1 Agriculture in the Economy .I F'oreign Trade .1 Sector Organization .I Land Reclamation Investment. 2 Bank's Involvement in Agriculture and the Irrigation Subsector. 2 II. PROJECT PROCESSING 3 Project Identification and Preparation. 3 Project Setting. 4 Project Objectives. 4 Project Description. Ill. PR C. T ...................................IMPLEMF;NTATIRr.5 Start--up .5 Physical Impleme-ntat ioll ............................. , 5 Irrigationi Water Demandcl, Supply and Qu:ility ............. - 8 Project Costs. 8 Project Financing .8 Disbursements. 9 Procuremen. 9 Accounts and Audit. 9 CoImIpl ianre with loan Covenants and Progress Reporting ... 9 IV. ACFRICULTURAL IMPACT ..................IX.ACT. v10 LTiud Use, Cropping PaLterti, and Yields .10 CharigLs in Agricultural Pr;icti,es .12 Cropn Produrtion and Costs .13 Marketiig .13  Page No. V. ECONOMIC IMPACT ..... .............. ....... . . 14 Project Beneficiaries .................... 14 Employment ..................... 14 Prices .. . ............... .......... ....... 15 Value of Production ............. ... ..... , . 15 Economic Evaluation ..................... ... ................ 15 VI. INSTITUTIONAL PERFORMANCE .................................... 15 Institutional Design and Performance .. ....................... 15 Operation and Maintenance .................................... 16 Supporting Services .......................................... 17 Cost Recovery ............. ... 18 Performance of the Bank ...................... 18 VII. CONCLTJSIONS & RECOMMENDATIONS ................................ 19 Lessons Learned ............. 20  Annexes Annex 1 - Investment in Agriculture Annex 2 - Table 1: Comparison of Project Irrigation Areas Estimated at Appraisal and Actual Table 2: Comparison of Work Quantities Table 3: Actual Project Costs, by Years Table 4: Project Cost Estimates at Appraisal and Actual Table 5: Analysis of Cost Changes from Appraisal Estimates Table 6: Project Financing Table 7: Cumulative Disbursements as Appraised and Actual Table 8: Equipment and Materials Procured Through ICB Annex 3 - Table 1: Cumulative Land Area tinder Irrigation (1979-88) Table 2: Actual and Projected Cropped Areas Table 3: Cropping Patterns on those Project Farms Commencing Irrigation in 1981 Table 4: Rainfed and Irrigated Crop Yields (1981-84) Table 5: Crop Yields on those Project Farms Commencing Irrigation in 1981 Table 6: Estimates of Crop Yields at Full Development (1988) Table 7: Fertilizer Use (Available Plant Nutrient Basis) Table 8: Volume of Agricultural Production Table 9: National Sales Prices for Main Farm Products and Inputs 1 (1977-85) Table 10: Average Farm Sales Prices in the Project Area (1981-85) Annex 4 - Table 1: Project Beneficiaries Table 2: Estimates of Economic Farmgate Prices (1978-1995) Table 3: Operation and Maintenance Costs for the Economic Analysis Table 4: Economic Budget without and with Project Table 5: Economic Budget, Incremental Tabl.e 6: Economic Rate of Return Annex 5 - Organizational Chart Annex 6 - Comments from the Borrower on the PCR MALP No. IBRD 13020 Ri  PROJECT COMPLETION REPORT ROMANIA - VIISOARA IRRIGATION PRO)ECT (LOAN 1509-RO) PR EFAGCE This is the Project Completion Report (PCR) of the Viisoara Irrigation Project in Romania, for which Loan 1509-RO in the amount of US$40.5 million was approved on January 12, 1978. The loan was closed as scheduled oln December 31, 1983, and the full loan amount has been disbursed. The date of final disbursement was March 17, 1983. The PCR was prepared by the Europe, Middle East and North Afrira Regional Office following a mission to Romania in December 1985 and is based in part on a draft completion report prepared by the Borruwer the Banik for Agriculture and Food Industry (BAFI), a review of the Staff Appraisal Report (No. 1719a-RO) dated December 21, 1977; the Loan Agreemer-t of January 27, 1978; Economic Memorandwn dated May 6, 1986 (No. 5832-RO); the Agricultural Sector Survey for RomaTria issued in October 1976 (No. 953a-RO); a review of relevant Bank files, correspondence with the Borrower, internal Bank memoranda on project issues as contairned in relevant Bank files, minutes of the Board's discussions, Bank Supervision Reports, quarterly progress reports prepdred by the Borrower, as well as interviews with officials both in the Bank and in Romania who have been associated with the project, This PCR also is based on a review of the PPAR (Report No. 5386, dated December 28, 1984) for the Ialomita-Calmatui Irrigation Project (Loan 1368-RO) and the Rasova--Vederoasa Irrigation and Agricultural Developmerit Project (Loan 1247-RO). A copy of the draft report was sent to the Borrower on August 13, 1986 for comnents. Cormments received from BAFI have been incorporated and are attached as Annex 6. This report has not been subjected to an audit by OED).  - 1 i - &AULUTA SMELT KEY PJOJECT DATA Actual or Actual as I of Appraisal tiffste AppraiSal Total Project Cost (US$ million) 153J 157.9 103.0 Total Project Cost (loi million) 3,070.0 2,746.2 90.0 Loan Amount (USS millior) 40.5 40.5 100 Disbursed (US$ million) 40*5 40* Soo Disbursed (US$ million) Date Board Approval 01/12/78 Loan Agreewnt Oate 01/27/78 Date Effectiveness 04/27/78 05/15/78 114 A/ Date Physical Components Completed 06/30/83 06/30/86 iss u/ Closing Date 12/31/83 12/31/83 00 IL/ Economic Rate of Return (1) 14 12 86 Institutioral Perforwance good ogod Tecmnical Performance good gOOd STAFF INPUT La El1